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Bitcoin Price Analysis: Lot of Consolidation, Ready for the Next Phase?

The consolidation phase continues for the Bitcoin market as the price hit $43,000, as a minor effort to reclaim the $44,000 support level.
Bitcoin Price Analysis: Lot of Consolidation, Ready for the Next Phase?

Bitcoin Price Analysis: BTC/ USD – General Overview

The consolidation phase continues for the Bitcoin market as the price hit $43,000, as a minor effort to reclaim the $44,000 support level. The $44,000 level remained the standing/support point for the market before trying and achieving to hit an all-time high level at $69,000. As we have stated many times in the Price Analysis articles, after a consolidating phase, there is a breakthrough movement in both directions. As the price moves towards the $44,000 level, the end of the consolidation phase will come to an end.

 

In this week’s Bitcoin Price Analysis the positive scenario indicates that the price will break the parallel channel, raising the price levels in two steps probably. The first step will be a recovery towards the $47,000 level, which will set up the trend for another bullish run. Apart from that, the $47,000 point indicates that the market has an established market depth above this zone and it will have more support in future bearish situations.

 

The negative scenario will bring the market below the $40,000 level, confirming another round of bearish fears. As we had experienced in mid-2021, the market was moving between $32,000 to $40,000 for some months, before making a breakthrough movement and starting another bullish cycle.

 

The cycle theory has found a severe implementation in the Bitcoin market and the expectations this time are higher than ever. A single positive fact that could drive the market even higher is the bottom start of the cycle. If the bottom start of the new bullish cycle is higher than the one of the previous bullish cycle, the expectations for a new all-time high level are much higher. In the current situation, we can observe that the previous bottom has started from the $32,000 support zone. If the bearish feeling is halted around this level, we should expect another all-time high level in the next months.

 

Of course, this move should be accompanied by more fundamental news and stories that will help Bitcoin’s adoption and institutional onboarding. 2022 will be another interesting year for Bitcoin and we will be here to cover every aspect of the market development.

 

The trading volumes didn’t show any special move as the weekend is (most of the time) a relatively slow period, where corrective moves happen and investors are looking to the next moves in the week’s start.

 

The moving averages have started to move towards each other but there are still positioned in bearish formation, indicating that the market might need a little more time to decide that this is the right time for a breakthrough move.

 

Bitcoin Price Analysis: BTC/ USD – General Overview
Bitcoin Price Analysis: BTC/ US Dollar – General Overview, from Tradingview

Bitcoin / US Dollar – Short-Term Overview

In this Bitcoin Price Analysis, regarding the short-term window, we can see that the weekend was calm, without any volatility, and most importantly, between the parallel lines created in the last 12 days. The minor parallel move between the two zones can predict that the consolidation move for the next days will not get out of those lines.

 

As we can see from the diagram of our Bitcoin Price Analysis, the price could reach up to $45,000, without leaving the channel. This means that only a sharp move that would break the channel lines will establish a different trend than the current one. We should remind that the next goal remains at $47,000, without any decline for that target.

 

Bitcoin / US Dollar - Short-Term View
Bitcoin Price Analysis: BTC/ US Dollar – General Overview, from Tradingview

Bitcoin / US Dollar – Day Trading Overview

As we have stated many times in the past, a stable or consolidating period is more than ideal for day traders as they can exploit the daily volatility levels and claim profits in shorter periods on the Bitcoin / USD market. Apart from that, the consolidating periods are eager to perform “return to the average” moves and perform repeating patterns in the 4-hour window.

 

From the current situation, we can observe that the consolidation period will continue with a potential uptrend up to $45,000. The upscale could happen in smaller spikes that don’t last more than 8 hours. After that short period, the trend corrects back and the price went on this path on and on. We believe that smaller moves will be evident in the next period, where day traders could exploit them for profitable positions.

 

 

Bitcoin / US Dollar - Day Trading View
Bitcoin Price Analysis: BTC/ US Dollar – General Overview, from Tradingview

Bitcoin Price Analysis: Bitcoin / US Dollar – Indicators

MACD (Moving Average Convergence Divergence) index has four (4) consequent days of green signals, indicating that the BTC / USD market has a positive foundation for the next days. The rising momentum in the market has proved in previous situations as an optimal practice for establishing a new trend. The next days will be crucial for the momentum development and the continuous green days will mark the best-case scenario for the market.

 

The RSI (Relative Strength Index) index has remained stable around value = 40, showing that the market remains intact regarding its next move. Watching solely at the index value, we can say that there is a negative background in the market development but the contradicting indexes can bring us in a stable situation, postponing the breakthrough movement that will escalate the market in the next trend.

 

Bitcoin Price Analysis: Bitcoin / US Dollar – Indicators
Bitcoin Price Analysis: BTC/ US Dollar – General Overview, from Tradingview

Bitcoin Price Analysis: Conclusions

Bitcoin has remained around $43,000, confirming the consolidating period and the overall stability in the market. The parallel channels continue to exist and shape the next trend in the market. The expectations are on the bullish side as some analysts expect this level to be a local bottom, where the next bullish phase will start from this point and up. Everyone expects a breakthrough move in the next few days and we will be here to cover it and explore the next moves in the market development.

 

Read our previous Bitcoin Price Analysises here!

George Foroglou

George Foroglou

George Foroglou heard first time about Bitcoin in a Christmas dinner in December 2013. As Finance student, he published articles regarding Bitcoin adoption, blockchain applications and IoT monetization strategies. From 2017, he is an active trader in the Bitcoin and other altcoins market, using mostly Technical Analysis. He has worked for plenty web portals, giving insightful articles about technical and fundamental analysis.

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